What is APY?

APY (Annual Percentage Yield) refers to the annual rate of interest received by the social investor taking into account the effect of compounding. For example if a social investor has made an investment of Rs. 1000, they will get an interest of Rs.

20 after their repayments. However after each payment they will get the divided interest on Rs. 1000 loan and not the remaining loan amount.

Hence the flat rate is recalculated to give an APY. Rang De gives its social investor an APY of 3.5% (2% flat). More.

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